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Downloading apps, videos and other digital content to soon be payable in Kenya

Friday, 05 June 2020 14:58
Downloading apps, videos and other digital content to soon be payable in Kenya

(Ecofin Agency) - Kenya Revenue Authority (KRA) announced the introduction of digital content taxes, meaning the downloading of software, podcasts, videos, etc., will soon be paid for in the country.

KRA says the measure is to offset some of the losses due to Covid-19. If it is adopted, Internet access will in some ways become more expensive. In the interests of transparency, the Kenya Revenue Authority has invited stakeholders, tax professionals, and the public to submit their comments on the draft regulation by 15 June 2020.

This VAT will apply if the download recipient is in Kenya; if the payment proxy including the credit card and bank details of the download recipient is in Kenya; or if the residence proxy- including the billing or home address or the access proxy- including the Internet proxy address, and the country code of the recipient's number is in Kenya.

List of domains targeted for VAT

- Software programs, including downloads of software, drivers, website filters and firewalls;

- Electronic data management, including website hosting, online data storage, file sharing, and cloud storage services.

- Supply of music, movies, and games

- Supply of search engine and automated helpdesk services, including the provision of custom search engine services

- Tickets purchased for live events, theatres, restaurants, etc. purchased via the Internet

- Supply of distance teaching via pre-recorded media or e-learning, including the provision of online courses and training

- Supply of digital content for listening, viewing or playback on any audio, visual or digital medium

- Supply of services in e-marketplaces that link the supplier to the recipient, including transport hubs

- Any other digital market supply as determined by the Commissioner.





 
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